Technology manufacturer Rakon has responded to a query from the Shareholders Association regarding an "unusual" rise in its share price in the lead-up to a major announcement last week.
The Mt Wellington-based firm's stock rose 26.6 per cent, from 18.3c to 23c, in the eight trading days prior to July5, when the company announced it would sell 80 per cent of its Chinese joint-venture factory for US$18.8 million ($24 million) to reduce debt.
"We saw some price movements in Rakon that we thought were unusual and wanted to draw that to the attention of the NZX," said Shareholders Association chairman John Hawkins.
Rakon chairman Bryan Mogridge said no company directors, staff, or their related parties, had sought or been granted approval to buy or sell shares before the announcement.
The company - whose products are crucial components of telecommunications infrastructure and consumer goods such as smartphones - is selling the stake in the Chinese plant to Shenzhen Stock Exchange-listed ZheJiang East Crystal Electronic. The New Zealand company will retain a 5 per cent holding in the venture.
